Real Madrid and state aid

           

  In general terms, the rules are broken only when a public body acts in a way a private investor would not: so a fixed-term loan to a club at commercial rates is fine, but an open-ended commitment to plug holes in the accounts is not.These moves are part of a wider reinvestigation of how football, and sport in general, is operated and organised, said Trevor Watkins, global head of sport at multinational law firm Pinsent Masons. In a joint statement, Almunia and Platini said rising debts across European football were a major concern and they made clubs more likely to seek help that could breach state aid rules. If a public authority is found to have broken state aid rules, the commission can impose fines and force the recipient of the aid to repay it. This can happen up to 10 years after the event.Regulators have not been happy about how money cascades down through football for years and there is a fundamental tension between European competition law and sport's desire to govern itself.The European Commission confirmed on Wednesday it was considering whether to open a formal inquiry into a 2011 property deal between Real Madrid and Madrid City Council.